Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 2,086,695,000, a decrease of 13.0% compared to the same period last year[5]. - Net profit for the period rose by 27.5% to RMB 626,479,000, with earnings per share increasing by 27.7% to RMB 0.83[5]. - Total sales for the first six months of 2024 decreased by 13.0% to RMB 2,398,680,000 compared to the same period in 2023[12]. - The net profit for the first six months of 2024 was RMB 626,479,000, an increase of 27.5% compared to the previous year, driven by growth in other income and investment income, as well as a reduction in sales and distribution costs[32]. - The company reported a profit before tax of RMB 862,083, which is a 28.5% increase from RMB 671,288 in the previous year[58]. - Basic and diluted earnings per share increased to RMB 0.83, compared to RMB 0.65 for the same period last year[58]. Revenue Breakdown - The proportion of prescription drugs and OTC products in revenue was approximately 88.9% and 11.1%, respectively[6]. - Oral products accounted for 62.7% of total sales, while injection products represented 37.3%[12]. - Sales of injection products fell by 18.6% to RMB 957,253,000, primarily due to high comparison bases from the previous year and centralized procurement impacts[10]. - Sales of traditional Chinese medicine granules dropped by 11.8% to RMB 554,726,000, accounting for 26.6% of total sales[13]. - Prescription drug sales fell by 9.9% to RMB 2,056,849,000, while OTC drug sales saw a significant decline of 32.0%[12]. Cost Management - The company focused on cost control, reducing sales and distribution costs by approximately 20.3% compared to the previous year[7]. - The company's sales and distribution costs decreased by 20.3% year-on-year, accounting for 39.2% of total revenue, attributed to improved cost control measures[29]. - Administrative expenses increased by approximately 4.9% year-on-year, representing 7.0% of total revenue, mainly due to higher salaries and social insurance costs[30]. Cash Flow and Liquidity - Net cash generated from operating activities was RMB 564,116,000, an increase of 75.5% year-on-year[7]. - The group’s cash and cash equivalents amounted to approximately RMB 6,234,974,000 as of June 30, 2024, up from RMB 5,908,776,000 at the end of 2023[34]. - The company reported a net increase in cash and cash equivalents of RMB 341,966 thousand, compared to RMB 330,668 thousand in the prior year[68]. Investment and R&D - The company invested 2.1% of total sales revenue in R&D, focusing on modern Chinese medicine for chronic diseases, particularly in areas where Western medicine lacks solutions[19]. - The company is developing over 100 new drugs based on ancient classic formulas, with the clinical trial for Yigong San Granules already underway[20]. - Total investment income for the six months ended June 30, 2024, was RMB 121,173,000, significantly up from RMB 56,609,000 in the same period of 2023, representing an increase of 114.3%[74]. Dividends - The board declared an interim dividend of RMB 0.11 per share for 2024, totaling RMB 0.54 per share for the twelve months ending December 31, 2024[7]. - The company declared a second interim dividend of RMB 0.11 per share, totaling RMB 83,094,000, to be paid on September 27, 2024[80]. Market Strategy - The company plans to enhance market expansion in provinces like Beijing, Tianjin, Anhui, and Shandong for traditional Chinese medicine granules[13]. - National policies are increasingly supportive of traditional Chinese medicine, promoting innovation and development within the industry[21]. Shareholder Information - Major shareholder 富威 holds 546,802,990 shares, representing approximately 66.12% of the company[44]. - The company has no unexercised options under the 2015 share option plan, which is set to expire on May 28, 2025[48]. Employee and Management - The number of employees decreased to 3,232 as of June 30, 2024, down from 3,436 as of December 31, 2023[40]. - The company reported a total remuneration of RMB 7,664,000 for key management personnel for the six months ended June 30, 2024, compared to RMB 6,468,000 in the same period of 2023, reflecting an increase of approximately 18.5%[97].
神威药业(02877) - 2024 - 中期财报